Online Forex Trading Example – Forex Sailing GBP/CHF
In my last blog post, I introduced rules for the online forex trading method called “Forex Sailing.” Naturally, the next step is to show you examples of successful forex sails (and where they failed).
Today, I’m going to share a case study of a recent successful online forex trading opportunity that successfully sailed 212 pips in 6 days! The best part is, this was only one of the forex trading opportunities that happened online during this same time period!
Rules for Sailing Forex Trading Online
The trade that I’ll be referring to below follows the Forex Sailing rules for online forex trading. This trade follows those specific rules. Please refer to the Forex Sailing rules, to understand this forex trading example.
GBP/CHF Daily Charts
Between April 5th & April 12th, 2010 the GBP/CHF formed a fibonacci wave up (forex candy-cane), which served as a reversal signal of the previous downtrend.
On April 15th, 2010 a look at daily online forex trading charts for the GBP/CHF revealed that a fibonacci wave had hit the following numbers:
High Daily Forex Candy-Cane: 1.6513
Low Daily Forex Candy-Cane: 1.5822
61.8% Retracement Daily Forex Candy-Cane: 1.6249 (Retracement Hit)
Notice how the daily forex candy-cane was formed (i.e. hit the 61.8% retracement) on April 12th:
GBP/CHF Enters the Forex Sailing Trading Zone
As soon as the wave in the daily charts (see picture above) was fully formed (i.e. hit the 61.8% retracement level), the GBP/CHF arrived at point III (which is the first Forex Sailing trading zone).
Zoom into 4-hour charts for GBP/CHF to go Forex Sailing
As soon as the GBP/CHF reached the III point on the daily charts (April 12th), we were able to zoom into the 4-hour online forex trading charts and identify the next forex trading opportunity.
At this point, we’re essentially waiting to see the SAME THING HAPPEN ON THE 4-HOUR CHARTS AS WE DID ON THE DAILY CHARTS!!!
Once we reach the III point on the daily charts, we’re looking for the III point on the 4-hour charts!
GBP/CHF hits the Forex Sailing Trading Zone on 4-hour charts
Although the daily charts reached the III point on April 12th 2010, the 4-hour charts didn’t show a fibonacci wave zone pattern until April 15th 2010. The picture below shows you the 4-hour chart when it hit the III point:
Here are the numbers that show the 4-hour fibonacci wave pattern is fully formed on the 4-hour chart for the GBP/CHF on April 15th, 2010:
High 4-hour Forex Candy-Cane: 1.6392
Low 4-hour Forex Candy-Cane: 1.6180
61.8% Retracement 4-hour Forex Candy-Cane: 1.6311 (Retracement Hit)
GBP/CHF Forex Sailing Trading Calculations
Now that we have both:
- Fibonacci Trade Zone Entered on Daily forex trading Charts
- Fibonacci Trade Zone Entered on 4-hour forex trading Charts
We can enter a trade using the price movement from I-II as a projection for the price movement from III-IV. To do this, we need to find the DIFFERENCE (subtract) between I & II for the 4-hour fibonacci wave & ADD it to the current price (III).
The difference between I & II is the HIGH (1.6392) of the 4-hour forex candy-cane minus the LOW (1.6180) of the 4-hour forex candy-cane. When we do this subtraction we get: 1.6392 - 1.6180 = .0212 = 212 pips!
Since the price of the fibonacci wave retraced to 1.6311, we add 212 pips to 1.6311 to get our profit target. When we do this we get: 1.6311 + .0212 = 1.6523!
Entry/Exit orders for GBP/CHF Forex Sail Trade
When this trade was entered, a stop was placed at 1.6180 (the low of the 4-hour forex candy-cane). Once this stop was placed, there were only two outcomes for this trade:
- The trade would exit when the price hit 1.6523 for a profit of 212 pips.
- The trade would exit when the stop hit 1.6180 for a loss of 131 pips.
With this trade there was a risk of 131 pips to potentially make 212 pips.
GBP/CHF Forex Sailing Outcome
After riding the 4-hour wave of the GBP/CHF for almost a week starting on April 15th, the profit target was hit for a gain of 212 pips on this trade! The stop was never hit, so this was a successful online forex trading experience! Here’s a picture of the online forex trading chart showing what this looked like:
Are All Forex Sails This Successful?
No, some times forex sailing results in a failed sail (aka a loss). The good news is that you only have to be right 38.2% of the time to be profitable with Forex Sailing. I’ll be sharing more examples of successful sails with you, but I’m also going to show you some online forex trading examples where these types of trades didn’t work!
Related posts:
- Forex Sailing Trading Analysis for April 25-30
- Forex Sailing – RULES for Online Forex Trading
- Forex Sailing Video #6 – Online Forex Trading Course
- Online Forex Trading Waves for Forex Sailing
- Timeframes for Trading Forex Sailing
Tags: 4-hour charts, forex sailing, GBP/CHF, online forex trading Posted in
Rapid Forex on 
Philile on 
Gary Cooper on
May 1st, 2010 at 9:00 am
I noticed that the 61.8% level has confused a few people. I’ve actually explained this in a recent Forex Sailing video.
I apologize that my reply took so long, but I wanted to answer this in a video as part of the Forex Sailing video course. It should make sense after you watch it!
[Reply]
May 1st, 2010 at 8:12 pm
Nice trade example.
I think you are confusing us by not using the retracements as they show when a Fibonacci retracement tool is used. On the daily chart, becasue we are checking an up move, I put my Fib retracement tool to start at the low of 1.5822 and run it up to the high of 1.6513. It shows the following retracement data:
38.2% 1.6249
50% 1.6168
61.8% 1.6086
I suspect you would give the 38.2% retracement as 1.6086. This is clearly backwards from what is expected when using a Fib retracement tool.
I suspect that in some later posts you will discuss trade management and use of trailing stops to lock in profit as the trade progresses.
[Reply]
May 1st, 2010 at 10:09 pm
Thanks Brian that makes the whole process much easier to understand now
Can I assume the the same principal could be applied to say the hourly and 10 min time-frames also?
And as far as I can see the Targets-Stops and R2R would also contract to suit
Not trying to run before I can walk – Just seems easier for me to look at the principal in action and play around with it during my normal daily trading
Thanks for sharing all your valuable knowledge so far
Cheers
Davina xxxxxxx
[Reply]
May 2nd, 2010 at 2:12 am
Hello Brian
I am really enjoying your e-mail forex trading course and blog and appreciate all the good educational information you provide. I am very interested in fully learning your sailing method but I have a question I hope you can help me with regarding the system.
I was a little confused by your earlier lesson regarding the exact rules for forex sailing when you mentioned there were other retracement levels other that 61.8 (see below)
“Although you’ll be looking at a 61.8% retracement to enter
the trade, you’ll be looking at wave patterns to exit. Even if the
numbers are different, you’ll still exit the trade properly…”
but I thought I would wait for one of your promised examples first to see if that clarified the situation for me.
Now that we have your first example (and well done with that trade) I thought I’d ask the question as it seems I am even a little more confused.
I understand you waited for the first wave to form on the daily charts when price retrace 61.8 on April 12. You then switched to the 4hr chart to wait for the same pattern to form. In your e-mail you say the 61.8 retracement on the 4hr happened on April 15th and therefore the trade could be taken. I may be making an error here but the retracement you highlight on April 15 seems to have only been a 38.2% retracement (not 61.8%). Am I correct here and does this affect where and when you take a forex sailing trade?
I hope you do not mind me asking this question as your trade recommendation netted 212 pips! but I just want to be sure I understand the rules for taking trades fully before going for a sail myself.
Thanks for all you great info. Keep up the good work and enjoy Maui (shouldn’t be too hard!).
Best regards.
Jim
[Reply]
May 2nd, 2010 at 2:13 am
Hello again Brian
Just wanted to add I just noticed also that the daily retracement is not a 61.8% but rather again more of a 38.2%. I would appreciate any clarification you can give me.
Thanks again.
Best regards.
Jim
[Reply]
May 2nd, 2010 at 2:30 am
THANKS BRIAN,
Still trying to work it out will get clear once I go over it a few times.
Kev.
[Reply]
May 2nd, 2010 at 4:20 am
Hi BRIAN….
i am CONFUSED !!…..regards the daily 61.8% retrace on the DAILY ….using your values ,the retrace value is 1.6094….
I am not sure if i have completley misunderstood the way a FIBO retrace should take place…but i dont get the same value as your CHART…..i understand that a RETRACE is against wave 1 and 2…..so thats how i worked out the 61.8% value….please clarify
kumar
[Reply]
May 2nd, 2010 at 4:51 am
Hi,
Is’nt the profit\loss ratio is too risky?
All the best
Eli
[Reply]
May 2nd, 2010 at 5:02 am
Brian, Great example. I noticed that this trade almost didn’t work because it came down to almost stop you out but by holding on and letting the trade play out it ultimately was profitable.
[Reply]
May 2nd, 2010 at 5:12 am
Hi Brian
I am a bit confused here when u mention that price on the daily fibo wave retraced to 61.8% @ 1.6249. Could u please show yr chart with the fibonacci being used? I use my fibonacci to measure the Pullback from the swing low at 1.5180 (daily candle on low on 28 march 2010) to the last swing high of 1.6512 on 9 Apr 2010, and the retracement of the candy cane on daily chart is at 38.2% @ 1.6239 thereabouts, not 61.8% as u mention.As for H4 t/f same goes for the pullback also at 38.2% not 61.8%. Please clarify. Tks.
[Reply]
May 2nd, 2010 at 9:25 am
Hello Brian,
Thanks for all you are doing for us.
Checking my free 4 hour chart (netdania.com), I get the signal to enter long at this time (the pair has been range trading since April 21). By now the lower line has been touched many times and appears safe to enter long. Are we to give up on this pair now?
Enjoy you trip,
Faye
[Reply]
May 2nd, 2010 at 11:30 am
I dont comment enough, as im too busy looking at your FX Sailing. But must say its brilliant and thoroughly enjoyable. Overall I can see I could do well if I stick to the rules and continue to study all your education.
Many thanks for all the previous Sailings trips.
Alan
[Reply]
May 2nd, 2010 at 1:14 pm
Great example!. But i want to ask that on the GBCHF 4hr #31 chart, It appears to me like the point III of the first wave was at that low just above the 1.6250 price. That would mean we are actually on stage V of the second wave. What is the basis of ignoring that II to III part and treating 1.6180 and 1.6392 as ONE upward price movement i.e I to II? Because in real-time, you wouldnt have known that the price would still go as high as 1.6392 before retracing again.
[Reply]
May 2nd, 2010 at 1:42 pm
Hi,
In your GBPCHF daily example,
High Daily Forex Candy-Cane: 1.6513
Low Daily Forex Candy-Cane: 1.5822
How do you calculate the 61.8% retracement?
My understanding is it should retrace from the top @1.6513, thus 38.2% should be 1.6249 and 61.8% should be 1.6086
Regards,
Toyogo
[Reply]
May 2nd, 2010 at 2:14 pm
Now I have an idea how to apply the rules for trading. Thanks so much, Brian.
Oh! before entering the trade, did you use any indicators to confirm? If yes,could you tell us what indicators and parameters you use on the chart?
[Reply]
May 3rd, 2010 at 1:24 am
Excellent !!!
[Reply]
May 3rd, 2010 at 1:26 am
But I am wondering what will be the next sail set up because the Wave hasn’t completed on Daily chart yet !
[Reply]
May 3rd, 2010 at 5:15 am
Dear Sir,
Please put the Date-Time tag in brackets next to :
High Daily Forex Candy-Cane : 1.6513 (2010.04.09 00:00)
Low Daily Forex Candy-Cane: 1.5822 (Not understood) (Is it 1.5826 on 2010.03.26 00:00 ?)
High Daily Forex Candy-Cane: 1.6513 (Not understood)
Low Daily Forex Candy-Cane: 1.5822 (Not understood)
Please help out by indicating the Date and Time of the above mentioned values.
Thanks,
Sandhya
[Reply]
May 3rd, 2010 at 2:24 pm
Hi Brian,
Since high 4-hour candy cane is 1.6392 and low 4-hour candy cane is 1.6180, then 1.6311 is only at 38.2% retracement. The currency pair did go down through 1.6261 which is the 61.8% retracement. Can you explain why you entered the trade so early?
Grace
[Reply]
May 7th, 2010 at 10:37 pm
I dont really get this retracement stuff. What is the implication of the 61.8% retracement in a trade? How do one determine when there is a trend reversal?
[Reply]
May 14th, 2010 at 7:50 am
Hi Brian, I think I did post some questions pertaining to this GBPCHF trade based on the retracement level which u took a long position n profited nicely. I wonder what happen to my question on the retracement that you mentioned at 61.8% on the H4 t/f which when I look at my chart and compare the pullback levels it was not at 61.8% but more of 38.2% and it continued its swing up. Could u please explain on the charts or best means to show how you got 61.8% retracement for the long position based on candy cane/brolly wave structure? Look forward to an answer. Funny my questions are not being posted before….
[Reply]
June 13th, 2010 at 7:26 am
thank you so much for your explanation. I’ve a question as regarding the time frame we’ve chosen to trade in. i understand we enter trades on the 4 hr, checking our trade direction on the daily.
i want ask, can we do this on the daily, taking our trend direction from the weekly?
or can this be done strictly on the daily without recourse to any other time frame?
i ask this, cause my job demands are so much, the possibility of missing trades on the 4 hr is there. trading on the daily narrows my checking up the forex charts once a day: at the end of the day.
thanks for the reply.
[Reply]
Rapid Forex
Reply:
June 17th, 2010 at 11:10 am
@Tony – you can check weekly, but the 4-hour charts only require you check them once every 2 days. Trades generally last 6 days & require no effort once placed. If you want to use weekly/daily it would work, but you’ll need some serious bucks to cover the 1,000-2,000 pip stops you’ll need to place for those large trades!
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